The Network Firm's CPA & Tax Insights For Bitcoin Miners With Nick Ward & Noah Buxton

On this episode, Jarrett Carpenter is joined by Noah Buxton and Nick Ward, Co-Founders of The Network Firm, where they share CPA insights and tax considerations for Bitcoin miners and more:

⛏️⚡️ Bitcoin miners have two taxable events: earning Bitcoin rewards and disposing of Bitcoin.

⛏️⚡️ Setting up a legal structure, such as an LLC, can allow miners to take advantage of certain deductions.

⛏️⚡️ Depreciation is a key tax benefit for miners, with options for accelerated and bonus depreciation.

⛏️⚡️ Miners should plan for the tax implications of selling miners, as it can result in both income and capital gains tax. Hobbyist miners and business miners have different tax implications, with business miners being able to take advantage of depreciation deductions.

⛏️⚡️ Planning and working with a CPA is crucial to navigate the complex tax landscape and optimize tax strategies.

⛏️⚡️ Tracking tax basis on mined coins can be challenging, but there are software solutions available to assist with this.

⛏️⚡️ The upcoming bull run may not lead to immediate changes in the tax code, but there is hope for a more favorable regulatory environment for Bitcoin miners.

⛏️⚡️ EPISODE CHAPTERS ⛏️⚡️

00:00 - Episode Intro

01:06 - What Is The Network Firm?

04:05 - Evolution of CPA Work In Crypto & Bitcoin

07:45 - 2 Taxable Events For Bitcoin Miners

09:40 - Tax Myths For Bitcoin Miners

13:00 - Mining As A Business vs Hobby (Simple vs Complex)

18:20 - When Should You Set Up A Business Structure

20:55 - Taking Advantage of Depreciations

27:06 - Taxable Event of Selling Miners

32:09 - Year End Tax Planning For Bitcoin Miners

36:27 - Tax Benefits of Buying Spot vs Mining Bitcoin

39:47 - Tax Tracking Basis of Mined Coins

47:20 - Bull Run Implications To US Tax Code

49:47 - What Law Would Noah Put Into Place For Crypto CPAs

Tax Considerations For Bitcoin Miners Blog - https://compassmining.io/education/tax-considerations-for-bitcoin-miners/

S21 Promo Pack - https://education.compassmining.io/education/antminer-s21-pro-pack/

The Network Firm Website - https://www.thenetworkfirm.com/

TNF X Account - https://x.com/The_NetworkFirm

TNF LinkedIn Account - https://www.linkedin.com/company/the-network-firm/

Noah's LinkedIn - https://www.linkedin.com/in/noahbuxton/

Noah's X - https://x.com/BTCmePLZ

Nick's LinkedIn - https://www.linkedin.com/in/nwcpacbp/

Nick's X Account - https://x.com/TripleEntryCPA

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